401(k) Plan Cost Calculator: The Impact of the SECURE Act

How much will a 401(k) plan cost your business? Could starting a retirement plan qualify you for tax incentives? Use this calculator to learn what offering a Human Interest 401(k) might cost your company after accounting for tax credits.

2022*
2023
$1,591.00$1,872.00
Base Service Fee$1,050.00$1,800.00
Per Employee Fee$42.00$72.00
One-time Setup Fee$499.00$0.00
-$1,147.75-$1,218.00
SECURE Act Tax Credit for Retirement Plan
-$500.00-$500.00
SECURE Act Tax Credit for Auto-enrollment-$500.00-$500.00
Estimated Tax Savings (25%) based on average effective tax rate for small businesses-$147.75-$218.00
Estimated 401(k) Plan Cost$443.25$654.00

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Disclosures and Notes

  • The 401(k) Plan Cost Calculator above is not tax or legal advice and is intended to estimate the cost of a Human Interest 401(k) plan, taking into account the tax credits available through the SECURE Act as well as on the average effective tax rate for small companies (25%).
  • Cost calculations above assume a constant employee size, including HCEs and NHCEs, and that headcount doesn't exceed 100, in order to maintain eligibility for SECURE Act tax credits. 2022 costs are calculated based on the number of months remaining this year. Costs for subsequent years are based on 12 months of service.
  • Costs above reflect the cost for an employer. In addition, there is a 0.50% investment management fee and custody fee and a 0.07% average fund fee for participants.
  • Costs above do not include any special offer or promotion.

Learn more about 401(k) tax benefits

Small business 401(k) plans are more accessible than ever thanks to the Setting Every Community Up for Retirement Enhancement (SECURE) Act. Not only is a 401(k) employer match tax-deductible, there’s also a credit to offset costs associated with starting a plan.

The SECURE Act offers tax incentives for business owners starting their first 401(k) plan, including a $5,000 tax credit for three years that covers qualifying expenses such as setup and administrative tasks. Auto-enrollment provides an additional $500 tax credit and can help encourage employee participation.

Tax credits can add up to $16,500 and are available for three years. To qualify, your business must have less than 100 employees.

How Human Interest can help

Technology has streamlined 401(k) plan administration—which is great news for small business owners. Rather than having to worry about the nuts and bolts of plans, Human Interest can help reduce your administrative burden, driving costs down in the process. That way you can spend less time on back-end work and more time on what matters the most: running your business.

Want to learn more?

Disclosures

A Human Interest Advisory Fee of 0.50% of plan assets per year is billed to the employee’s account according to the Terms of Service. In addition, fund expense ratios in Human Interest’s core fund lineup are on average 0.07%. These annual fees are charged directly by the investment funds to the employee’s plan assets and billed according to the Terms of Service.